18 Hrs
Source:
الاقتصادية
Iraq devalues dinar; black market outlook
The Central Bank of Iraq has decided to reduce the value of the dinar against the dollar from around 1,300 to 1,520 dinars, with the aim of rebalancing monetary policy, boosting local production, and easing pressures on the general budget. This devaluation increases the cost of obtaining dollars, temporarily helps boost dollar-denominated oil revenues, and improves the financing of salaries and local obligations. However, it does not address Iraq’s structural economic issues, which rely heavily on oil revenues and are vulnerable to price fluctuations. Additionally, these measures have widened the gap between the official exchange rate and the black market rate, as trust and foreign currency conditions continue to impact exchange rate stability. An active parallel market persists, where dollar prices often exceed 1,700 dinars compared to the official rate of 1,520 dinars.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)